School of Business
Permanent URI for this collectionhttp://192.168.8.146:4000/handle/123456789/16
Browse
5 results
Search Results
Item Chief executive officer characteristics and financial performance of commercial banks in Kenya(KCA University, 2025) Nyantika, Bevaline N.The performance of commercial banks is critical to the stability and growth of Kenya’s financial sector and the broader economy. This study investigates the influence of Chief Executive Officer (CEO) characteristics on the financial performance of commercial banks in Kenya. Specifically, it examines the effects of demographic attributes age, gender, education, and tenure on key financial indicators, including profitability, return on assets (ROA), and net interest margins. Anchored in the Upper Echelons Theory, the study adopts a quantitative research design and utilizes secondary data sourced from the annual reports and regulatory filings of 39 licensed commercial banks over the period 2003 to 2023. Regression analysis was employed to determine the relationship between CEO attributes and bank performance. The results indicate that certain CEO characteristics significantly influence financial outcomes. CEO tenure and gender diversity were positively associated with improved performance, suggesting that longer-serving CEOs and greater female representation at the executive level enhance strategic outcomes. CEO age also demonstrated a positive relationship with performance, reflecting the value of experience and maturity in executive decision-making. In contrast, the impact of educational background was inconclusive, showing no consistent effect across all performance metrics. These findings highlight the strategic role of executive leadership in shaping financial performance in the banking sector. The study offers key insights for policymakers, bank boards, and stakeholders, emphasizing the importance of integrating CEO demographic considerations into leadership selection processes. Recommendations include the adoption of performance-based remuneration systems, fostering leadership continuity, and promoting gender diversity in top executive roles. Overall, the study enhances understanding of leadership dynamics in corporate governance and lays the groundwork for future research on executive influence in financial institutions.Item Strategic innovation and financial performance of commercial banks in Kenya(KCA University, 2025) Momanyi, Edwin O.This study aimed to examine the impact of strategic innovation on the profitability of commercial banks in Kenya. Specifically, it focused on how technological innovation, business model innovation and market expansion influenced financial performance. The research was grounded in the Dynamic Capabilities Theory, Technology Acceptance Model, and Resource-Based View. A descriptive research design was employed, targeting all 42 commercial banks in Kenya, with 126 key participants drawn from the operations, finance, and marketing departments. A census sampling method was used. Data were collected through semi-structured questionnaires (primary data) and annual bank reports from 2019–2024 (secondary data), focusing on metrics such as ROE and ROA. Validity and reliability were ensured through expert consultation and pilot testing. Data analysis involved both descriptive and inferential statistics, and the results were presented using tables and graphs. The response rate was 77.8% of the respondents. The findings showed there is a significant positive trend towards business model innovation, technological innovation, while market expansion had moderate effect on financial performance of commercial banks in Kenya, business model innovation having the highest influence. The study recommends commercial banks in Kenya should intensify efforts to strengthen and scale up the adoption of business model innovations to enhance financial performance. Banks should further leverage data analytics and artificial intelligence to personalize services, improve decision-making, and expand financial inclusion. Future research ought to expand the scope beyond commercial banks to include other types of financial institutions such as microfinance institutions, SACCOs, and investment firms.Item Effect Of Islamic Finance On Performance Of Commercial Banks In Kenya(Kca University, 2020) Akongo, Fredrick O.The main aim of this study was to establish the effect of Islamic finance on the performance of commercial banks in Kenya. The study was guided by three specific objectives which are to; establish the effect of Mudaraba loans on commercial banks’ financial performance in Kenya, assess the effect of Ijara products on commercial banks’ financial performance in Kenya and assess the effect of Murabaha contracts on commercial banks’ financial performance in Kenya. This study used a descriptive research design. The study was undertaken in the two completely established Islamic commercial banks in Kenya as well as the 5 conservative banks offering partial Islamic commercial banking. Secondary data was used for this study. This means that the data used was quantitative in nature. The researcher used financial performance data for the years 2015-2019. Descriptive statistics was utilized to organize Data. To scrutinize the data, descriptive analysis such as standard deviation, frequencies, mean, as well as percentages were utilized. Additionally, Pearson correlation as well as multiple regressions which are inferential statistics were utilized. So as to come up with a reliable model for this survey the researcher carried out appropriate diagnostic tests. The study established that Murabaha is the most common Islamic finance products though the Ijara was also significant. The findings also showed strong positive relationship between Murabaha and bank performance. From the study findings it was evident that there was a positive effect of Ijara on bank performance. Mudaraba had a positive insignificant effect on bank performance. Based on the findings, the study concluded that the Islamic finance affected bank performance with some having a positive significant effect and others insignificant effect. The study recommended that commercial banks in Kenya should sensitize its customers on the need to promote partnership through financing business ideas. Also, among the most recommended measures put in place is by selecting key financial and other indicators to monitor programs based on the statutory requirements on Islamic banking products. Developing systems for managing future performance based on the statutory requirements are also highly recommended.Item Effect Of Ownership Structures On Financial Performance Of Listed Manufacturing Firms In Kenya(KCA University, 2021) Nzau, Stella K.Over the last decade, performance of listed manufacturing firms has been deteriorating with some companies almost collapsing. For instance, Mumias Sugar Company and Eveready have shown dismal financial performance. Prior studies have not addressed the effect of ownership structures on financial performance of manufacturing firms in Kenya. The main objective of the study was to determine the effect of ownership structures on financial performance of listed manufacturing firms in Kenya. Specifically, the study sought: to evaluate the effect of board shareholding on financial performance of listed manufacturing firms in Kenya, to explore the effect of foreign shareholding on financial performance of listed manufacturing firms in Kenya, to investigate the effect of institutional shareholding on financial performance of listed manufacturing firms in Kenya, to determine the effect of individual shareholding on financial performance of listed manufacturing firms in Kenya. This study was pegged on five theories; agency theory, stewardship theory, Stulz’s Integrated Theory, stakeholder’s theory and Resource based theory. This study was undertaken using a descriptive research design. The target population comprised of all seven listed manufacturing firms in Kenya that traded at NSE from 2010 to 2019. The study adopted a census method of data collection. This was made possible by the use of secondary data sheet. Data analysis was undertaken using panel data regression and data analysis results were presented on tables and graphs. The findings revealed that the model linking ownership structures and firm performance was significant. Moreover, the results revealed that foreign shareholding was inconclusive on the effect it has to the financial performance of listed manufacturing firms. Institutional shareholding has negative significant effect on the returns on assets while individual shareholding had a positive and significant effect on firm performance. This study recommended dispersed ownership as it improved financial performance of the manufacturing firms.Item Firm Specific Factors And Financial Performance Of Commercial And Services Firms Listed At The Nairobi Securities Exchange(KCA University, 2023) Muema, Michael M.The major interest of this study was to establish the relationship between specific factors and financial performance of commercial and services firms listed at the Nairobi Securities Exchange. The study was necessitated by the poor performance of the industry as has been reviewed and found out that most of the firms in this industry declared profit warnings during the period understudy. The specific firm factors fundamentally explain the status of the firm and hence the study considered some of the fundamental factors in a firm to study the industry. The objectives of the study were meant to determine the combined effect of Liquidity, Leverage, Tangibility and Firm Size on the financial performance of commercial and services firms listed at the Nairobi Securities Exchange. The study was anchored on the following theories namely Trade off theory, liquidity preference theory and Resource Based View theory. The study period was between 2012-2021 and a covered ten-year period. The study employed use of the secondary data as derived. The descriptive research design was adopted for the study. Panel data technique was adopted to test for descriptive, diagnostic tests and running regression analysis. Analyzed data was presented and displayed using tables, figures, graphs `and other pictorials. The diagnostic test revealed there was no multi-collinearity between the variables, some variables were nonstationary and were treated using trend fitting and first differential using Im Pesaran Shin Unit root test. Hausman test revealed the Fixed effect model was preferred over the Random effects method. Heteroscedasticity was tested using the Modified Wald test and the output revealed the data was not homoscedastic. Normality revealed the data was skewed to the right. Model was fitted using the general least square which was preferred since it accommodates and accounts for heteroscedasticity and auto correlation Additionally, some of the variables were transformed from their nominal values to natural log values. The hypotheses were tested using the fitted model and it was revealed some variables were conclusive and agreed with reviewed literature while others were conflicting and ambiguous desiring further studies on these variables. Lastly the study recommended the managers of the firms to put keen efforts in management of resources especially leverage, liquidity, and Tangibility. Leverage and liquidity had inconclusive effect on the ROA.